AbstractThis article explores an increasingly salient employment issue, namely, underemployment of recent college graduates. Using a sample of 283 recent business college graduates, the paper examines the consequences of underemployment on individuals' attitudes towards their jobs, their careers, and their lives in general. It explores, as well, how recent college graduates cope with underemployment and the impact of those coping strategies on individuals' psychological well‐being. The paper concludes with directions for future research on underemployment among recent graduates in terms of theory development, research methodology, and public policy formulatio